Free Service, for One Owner Only

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A policy change restricts transfers of BMW’s free maintenance plan.CreditMatt Nager for The New York Times

By Cheryl Jensen

Nov. 7, 2014

For some buyers, a new vehicle’s allure goes beyond handling, styling and prestige: They parse the terms of the warranty and even whether maintenance is covered. Some BMW enthusiasts were surprised this summer when the automaker announced limitations on the transfer of its four-year or 50,000-mile complimentary maintenance plan when a car goes to a subsequent buyer.

Previously, a selling point was being able to transfer the remainder of free maintenance coverage when the car was resold. Under the revision, coverage may be transferred only to “a current or former spouse or spousal equivalent, child, sibling, parent, grandparent, or grandchild.” The change took effect on July 1 and applies to 2015 or later models.

BMW estimates that its maintenance coverage saves original owners $2,000 over a typical 36-month lease.

“It’s a very expensive program,” said Kenn Sparks, a business spokesman for BMW, costing the company “many millions of dollars” a year. He said the change was necessary to sustain the program for original owners.

The change is unlikely to have much effect on resale values, Mr. Sparks said, because the majority of lease customers keep their vehicles for 36 months and “those who purchase outright tend to keep them much longer.”

Eric Ibara, director of residual consulting at Kelley Blue Book, agreed with that assessment and wrote in an email that Kelley was not adjusting BMW’s residual values — the projected value of the car at the end of the lease — as a result of the policy change.

Only a few other automakers limit the transfer of free maintenance to subsequent owners, and a New York Times survey of 30 mainstream auto brands suggests that there is no emerging trend to impose limits.

However, a few automakers are placing limits on the transfer of new-car warranties.

There is a difference between free maintenance and free factory-scheduled maintenance, which generally covers just an oil change and filter, said Jack Gillis, director of public affairs for the Consumer Federation of America and author of “The Car Book.”

Free maintenance of the type offered by BMW and its fellow brand, Mini, is better because it covers that and more, he said. BMW’s plan, for example, also covers BMW parts and labor and what are called “wear and tear” items like brake pads and rotors and windshield wiper blades.

“Covered maintenance is really a tremendous consumer benefit,” Mr. Gillis said. “It essentially means that you are driving free of any maintenance costs for that time period — in the case of BMW, 48 months or 50,000 miles.”

Among brands that offer some type of free maintenance, those that limit transfers to other owners, in addition to BMW, are Fiat, Hyundai and Kia.

Fiat’s current free maintenance plan of three years or 36,000 miles cannot be transferred to subsequent owners.

The only Hyundai with free maintenance is the Equus luxury sedan. Its three-year or 36,000-mile coverage can be transferred only to immediate family members defined as “spouses or registered domestic partners, parents, children or stepchildren.”

The only Kia with complimentary maintenance is the K900 sedan. Its three-year or 37,500-mile coverage cannot be transferred.

When free maintenance is offered, the terms vary widely — not only for what is covered but for the duration of coverage as well. Volkswagen’s program is for one year or 10,000 miles, Toyota’s is for two years or 25,000 miles, and Cadillac’s is for four years or 50,000 miles.

Some programs are not necessarily a great value, Mr. Gillis said. “It may be more efficient for certain consumers to pay $30 at a quick-lube place than take their car to a dealership.”

The most important thing is the warranty, which covers catastrophic, unexpected repairs of failed parts. “You want a good, long warranty that covers as much as possible,” Mr. Gillis said.

But while warranties generally transfer with the vehicle, The Times’ survey found exceptions.

Although Hyundai and Kia promote their 10-year or 100,000-mile powertrain warranty, the terms apply only to the original owner. Subsequent owners are covered for five years or 60,000 miles.

Mitsubishi’s powertrain warranty of 10 years or 100,000 miles for its vehicles (except for its electric i-MiEV and turbocharged Lancer Evolution and Ralliart) cannot be transferred. Subsequent owners get the balance of the five-year or 60,000-mile basic warranty, which covers powertrain components.

The electric and turbo Mitsubishis carry a three-year or 36,000-mile basic warranty and a five-year or 60,000-mile powertrain warranty. The balance of those warranties can be transferred.